Fiverr International (NYSE:FVRR) is a prominent player in the gig economy of the 2020s, offering a platform for independent contractors to compete for temporary jobs. While the platform initially gained popularity for jobs priced at $5, it has evolved to include higher-paying opportunities. Despite the impressive revenue growth and active buyer pool, the share price of Fiverr is currently undervalued, presenting a bullish opportunity for investors looking to capitalize on its potential recovery.
Recently, Eric Sheridan, a five-star analyst at Goldman Sachs (NYSE:GS), issued a Buy rating and a $43 price target for Fiverr International stock. With the stock trading below $30, Sheridan’s price target reflects an optimistic outlook for the company’s growth potential. The analyst’s bullish thesis is supported by the expectation of continued revenue acceleration in 2024, building on the company’s solid performance in the third quarter of 2023, where it reported a 12.1% year-over-year revenue growth and 4.2 million active buyers.
Sheridan also highlighted Fiverr’s focus on product innovation, profitability improvements, and marketing efficiency as key drivers for future growth. The company’s shift towards higher-value buyers and a reduction in net losses further bolster the case for a positive outlook on FVRR stock. Additionally, the average price target for Fiverr stock on TipRanks is $37.67, suggesting a 34.5% upside potential, based on two Buy ratings and one Hold rating from analysts in the past three months.
For investors considering a position in FVRR stock, it is worth noting that the most accurate analyst covering the stock, Jason Helfstein of Oppenheimer, has an impressive track record with an average return of 147.62% per rating and a 64% success rate on a one-year timeframe. This endorsement adds further credibility to the bullish case for Fiverr International.
In conclusion, Fiverr International presents a compelling investment opportunity for those looking to capitalize on the growth potential of the gig economy. With a strong track record of revenue growth, active buyer engagement, and a positive outlook from analysts, FVRR stock could be a surprise winner in 2024 and beyond. As the market may not fully appreciate the company’s growth prospects, investors could consider taking a position in Fiverr stock to benefit from its potential upside.
